There are many good reasons to evaluate the sales price of real estate property. Here are five of the most common explanations.
1. To make sure you have enough insurance.
Insurance is an important safety net. As property values fluctuate from year to year, it’s a good idea to stay on top of the current property values. That way if something bad happens, such as a natural disaster or an accidental fire, you have the security of knowing your property is covered by enough insurance.
2. When setting up a will or trust.
When you set up a will or trust , they have to establish the date-of-death value.1 That is the final sale value of the collected assets in the trust. This helps the attorneys know exactly how to divide up the estate. It includes determining the value of real estate property, personal property, and brokerage accounts.
3. If you are considering a home equity loan.
When the borrower has paid off a certain amount of their mortgage, they qualify for home equity loans against the remaining balance owed.2 To calculate your existing home equity amount you have to compare the existing home value to the amount owed on the mortgage to your current credit score. This will result in a current-loan-to-value ratio and how much you are eligible to borrow.
4. Because you’re thinking about selling.
Obviously if you are thinking about selling real estate you have a vested interest in knowing it’s market value so you can get a fair deal. Perhaps you want to know if now is a good time to sell, or if you should wait until next year. It’s 2020 and you do not have to live on a single piece of property until the day you die.
5. Because you are curious.
Curiosity is the best reason to check the value of your home or property. It’s your house. You can check the value if you want. It is part of being a responsible homeowner.
There are instant evaluation tools online, such as the one below. This will give you a general idea of the property value. However if you want the true market value, you should consult with a professional real estate agent. Because every piece of property is unique, and there are many factors to consider.
Contact us to put the home evaluation into perspective, or to inquire about a personalized Comparative Market Analysis (CMA) by a licensed REALTOR®.
- “Getting Assets Appraised” by Mary Randolph, JD, AllLaw<dot>com, Accessed May 20, 2020, https://www.alllaw.com/articles/nolo/wills-trusts/getting-estate-assets-appraised.html.
- “Home Equity Loan Calculator” by NerdWallet<dot>com, Accessed May 20, 2020, https://www.nerdwallet.com/blog/mortgages/home-equity-loan-calculator/.